Holding and subsidiary

[former_member392418]

Hi,

If a holding company has three subsidiaries, then how should the holding and subsidiaries be created in SAP?

Thanks

Sridevi

[Former Member]

Hi,

You can create one Company code for holding company and subsidiary companies can create as Profit Centers.

But this is may be depends upon the requirement of the client.

If the client is treating as seperate legal entiry for each subsidiary company then you have to create seperate Company Code for each subsidiary company or otherwise client is required only Financial Statements for these subsidiary company means you can create as Profit Centers.

Reward Points if useful

Regards

Ravindra

[Former Member]

Dear Sridevi,

In the possible scenarios u have to decide if all ur subsidiary companies are seperate legal entoties in the eyes of law. If so theu will have to create holding company as COMPANY & other sunsidiary companies as COMPANY CODES sharing client level data.

And if rest of the subsidiary compaies are not legal entities then go with the option suggested by Ravindra, which is of profit center.

Regards,

Ajay

[Former Member]

Dear Sridevi,

This depends on the Version u are using. in 4.7 till 5. you can create one Company code for your holding company and subsideries with Business areas. In 6.0 you can create profit centeres for your Subsidereis.

Regards

Ashok kumar

[Former Member]

Hi,

Take all as different company codes (4 nos) under one group(Holding company) and use consolidation( use either Eccs or BCS) to get the total group financials and each company code data for individual company financials.

Regards

P.Raghonadh Dutt

*Assaign points if useful

[Former Member]

Dear Sridevi,

In SAP we create company & company code. Now if u have one holding company other subsidiaries then create holding company as COMPANY in SAP & three subsidiaries as COMPANY CODES.

e.g ABC is holding company & P, Q & R are subsidiaries.

So company would be ABC

Company codes : P / Q / R

These all will have same COA, COD & Controlling area.

Let know if u have any more doubts.

Regards,

Ajay

[Former Member]

again you can go for another 3 company codes or business areas. before that what exactly your compony orgn stucture looks like,

regards,